Rubber price may soon touch Rs 200
Alappuzha: As the production was hit by heavy rain, rubber price is about to touch Rs 200 per kilogram. The price was at Rs 191. If the rain continues for a few more days, the price may touch Rs 200, it is learnt. The market experts said that the price is unlikely to dip even if rain recedes.
There are four major reasons for the surge in price.
- When production was hit by heavy rainfall, the availability of rubber in market decreased.
- It is off-season in the countries that are major producers of rubber. With this, availability in international market also dropped.
- The price in Bangkok, which is the main market of rubber, is at Rs 150 now. So, import is not profitable.
- Rubber latex costs Rs 190-195 and people are not interested in making rubber sheets. Latex price is about to touch Rs 200 soon.
The season starts in September and lasts till February. The peak season is between November and December. Since the rubber production is totally affected by the downpour, the farmers do not get the benefit of price hike.
The industrialists also are facing crisis as they have already used up the reserve stock for manufacturing. Along with replacing this, they also have to purchase more for production. Even if the availability increases, the price is unlikely to nosedive.